US President Donald Trump signed a memorandum aimed at protecting US lobster fishers who have found export markets drying up, a White House adviser dubbed the “lobster king” said on Wednesday, adding that China could face new tariffs.
“If those purchase commitments are not met, the United States Trade Representative [USTR] has been directed to use his discretion to impose ... reciprocal tariffs on the China seafood industry,” White House National Trade Council Director Peter Navarro told reporters.
He was referring to US$150 million in purchase commitments Beijing made under the “phase one” US-China trade deal.
In the memorandum, Trump also directed the US Department of Agriculture to provide lobster fishers with the same type of assistance other parts of the agriculture sector are receiving to protect them from harmful trade practices, Navarro said.
US Senator Angus King of Maine welcomed the decision and said it would make a huge difference for Maine lobster fishers who had been hurt doubly by Chinese tariffs imposed in 2018 and the collapse of sales to restaurants during the coronavirus lockdowns.
“This is definitely good news,” he said. “The timing is good. This has been a tough summer for our lobstermen.”
Trump earlier this month called Navarro the “lobster king” at a Maine event, threatening to impose tariffs on EU vehicles if the bloc did not drop its tariff on US lobsters.
US lawmakers from Maine have repeatedly called for aid for the lobster industry, which supports the livelihoods of 4,500 state-licensed lobster fishers and an additional 10,000 people, generating about US$1.5 billion each year.
Navarro said the memorandum also called on the USTR to develop recommendations over the next 90 days on how to address a loss of market share US lobster fishers have faced due to a Canada-Europe trade agreement.
Meanwhile, the US is considering levying taxes on an additional US$3.1 billion in European imports amid a dispute over subsidies to planemaker Airbus SE.
A document the USTR released on Tuesday listed products from France, Germany, Spain or Britain, ranging from olives to decaffeinated coffee, as possibly subject to the new tariffs.
The EU has threatened its own tariffs on Boeing Co, but in an April letter to US Trade Representative Robert Lighthizer, EU Trade Commissioner Phil Hogan said he saw the COVID-19 pandemic as an opportunity to defuse the tensions.
In a statement on Wednesday, a European Commission spokesman called the proposed measures “very damaging” and potentially beyond what the WTO ruling authorizes.
“This is particularly the case as companies are now trying to overcome the economic difficulties in the aftermath of the COVID-19 crisis,” the spokesman said.
“By potentially targeting new products, the US is increasing this damaging impact due to the cost of new disruptions to supply chains for the product potentially subject to new duties.”
Additional reporting by AFP
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